Buying vs Leasing Solar in 2026: Which Should You Choose?

Full transcript

The verdict up front

Ownership still wins the long game for most creditworthy homeowners in high rate states: with the federal residential credit gone for twenty twenty six purchases, paybacks stretched to roughly eight to thirteen years in our six state analysis — but twenty five years of near free production after payoff remains unmatched, and owned systems add appraisable home value. Leasing gained real relative ground though: third party owners still capture commercial clean energy credits and can pass savings through.

What changed in 2026

The residential credit's expiration rebalanced the field asymmetrically. A homeowner buying in twenty twenty six pays full unsubsidized price. A leasing company putting the same panels on the same roof still claims commercial clean energy credits — and competitive markets force some of that value into the monthly rate. Zero down offers genuinely price better against ownership than they have in years. That's not sales spin; it's the tax code's current shape.

The lease's fine print

Three clauses decide whether a lease is a deal or a trap. The escalator: zero to three and a half percent annual increases compound hard across twenty five years — model the total, not the first payment. The home sale: transferring a lease adds friction and buyout language matters more than the salesperson admits. And years ten through twenty five: an owner produces nearly free while a lessee keeps paying. Maintenance living with the leasing company is the honest counterweight.

The close

The rule: if you can buy — cash or a sane loan — and you'll stay put about eight plus years, buy; the back half of the system's life is where the money lives. If upfront cost is the barrier, or you value zero maintenance responsibility, price the lease honestly: total payments with the escalator, against our state by state payback data. The full analysis and FAQ are free at dreamy leads dot com.